Wage garnishment and exemptions in Indiana

Indiana uses the federal 25% limit on wage garnishment. Plus what a creditor can't touch in your bank account and what property you keep.

Short answer

Indiana follows the federal limit on wage garnishment. Same cap as federal law: no more than 25% of your disposable earnings, or the amount above 30 times the federal minimum wage ($217.50 a week), whichever is less. But you can ask the court to lower it to between 10% and 25% if you show good cause. In a bank account: $450 of intangible property, which includes bank (deposit) accounts and cash.

Wage limit
25% (federal limit)
Federal benefits in a bank account
Up to 2 months protected
Law
IC 37-2-6-4 (formerly IC 24-4.5-5-105); IC 34-55-10-2; 750 IAC 1-1-1(c)

How much of your pay can be garnished in Indiana

Wage limit
Same cap as federal law: no more than 25% of your disposable earnings, or the amount above 30 times the federal minimum wage ($217.50 a week), whichever is less. But you can ask the court to lower it to between 10% and 25% if you show good cause.
Law
IC 37-2-6-4 (formerly IC 24-4.5-5-105); IC 34-55-10-2; 750 IAC 1-1-1(c)

Like 17 of the 48 states we cover, Indiana relies on the federal cap (15 U.S.C. 1673(a)).

In nearby states

Property you can keep in Indiana

  • You can protect up to $22,750 in your home, $12,100 in other real estate or personal property, and $450 in cash and bank accounts, plus most retirement accounts and health savings accounts.
  • These are the amounts set by Department of Financial Institutions rule since March 1, 2022 (750 IAC 1-1-1(c)); the statute itself still shows the older $15,000 / $8,000 / $300 figures, which apply only until such a rule is adopted (IC 34-55-10-2(b), 34-55-10-2.5).

More Indiana rules

  • In 2026 Indiana moved its consumer credit code to a new Title 37; the wage garnishment limit is now IC 37-2-6-4 (P.L.115-2026).
  • A court can lower a wage garnishment below 25% (to as little as 10%) if you show good cause (IC 37-2-6-4(b)).
  • The garnishment limit (old IC 24-4.5-5-105) is now IC 37-2-6-4 with the same wording, and 'no garnishment before judgment' is IC 37-2-6-3.

Money in your bank account in Indiana

$450 of intangible property, which includes bank (deposit) accounts and cash. The statute says $300 (IC 34-55-10-2(c)(3)), but that amount applies only until the Department of Financial Institutions sets a new one by rule (IC 34-55-10-2(b)); its rule (750 IAC 1-1-1(c)) has set $450 since March 1, 2022, next review by March 1, 2028.

Directly deposited Social Security, SSI, VA and certain other federal benefits are protected up to two months' worth, without filing anything (31 CFR 212.5, 212.6). How garnishment follows a lawsuit.

Before a garnishment: the court case in Indiana

If you do not answer or do not show up, the court can enter a default judgment. The collector can then garnish your wages or bank account.

Answer the lawsuit by the deadline. In Indiana: 20 days after you are served in circuit or superior court (Ind. Trial Rule 6(D)(1)); add 3 days if the papers were served by U.S. mail (T.R. 6(G)).

What to do if you are sued in Indiana

Protecting your pay and property in Indiana

  1. Watch for deadlines

    Exemption deadlines on court, employer or bank papers can be short, so mark them at once.

  2. Work out what Indiana protects

    Indiana's wage rule: Same cap as federal law: no more than 25% of your disposable earnings, or the amount above 30 times the federal minimum wage ($217.50 a week), whichever is less.

  3. Check your bank deposits

    Indiana also protects money in an account: $450 of intangible property, which includes bank (deposit) accounts and cash. Two months of direct-deposited federal benefits must be left alone (31 CFR 212.6).

  4. File the exemption claim

    Get the exemption claim form from the clerk and file it in time. Start with Indiana court self-help (official).

Questions about garnishment in Indiana

Can a creditor take my wages in Indiana, and how much?

Same cap as federal law: no more than 25% of your disposable earnings, or the amount above 30 times the federal minimum wage ($217.50 a week), whichever is less. But you can ask the court to lower it to between 10% and 25% if you show good cause.

Can a creditor empty my bank account in Indiana?

$450 of intangible property, which includes bank (deposit) accounts and cash. The statute says $300 (IC 34-55-10-2(c)(3)), but that amount applies only until the Department of Financial Institutions sets a new one by rule (IC 34-55-10-2(b)); its rule (750 IAC 1-1-1(c)) has set $450 since March 1, 2022, next review by March 1, 2028.

What property is protected from creditors in Indiana?

You can protect up to $22,750 in your home, $12,100 in other real estate or personal property, and $450 in cash and bank accounts, plus most retirement accounts and health savings accounts. These are the amounts set by Department of Financial Institutions rule since March 1, 2022 (750 IAC 1-1-1(c)); the statute itself still shows the older $15,000 / $8,000 / $300 figures, which apply only until such a rule is adopted (IC 34-55-10-2(b), 34-55-10-2.5).

Can a creditor garnish federal benefits in my bank account in Indiana?

Directly deposited Social Security, SSI, VA and certain other federal benefits are protected up to two months' worth, without filing anything (31 CFR 212.5, 212.6). $450 of intangible property, which includes bank (deposit) accounts and cash.

Related Indiana pages

Sources

Last checked: Oct 24, 2026.

Federal sources